Tools · Cashback Compounder
Cashback compounder.
2% on a card invested for decades.
2% cashback that auto-deposits and gets invested compounds quietly over decades. Enter your monthly card spend to see what your cashback becomes if invested rather than spent.
Worked example: $3,000/month card spend × 2% = $720/year cashback. $720/year invested at 7% real return for 30 years compounds to roughly $68,000. The card is invisible wealth-building: same spending, additional accumulation. The math depends on actually paying off the balance every month. At 20%+ APRAnnual Percentage Rate (APR)The yearly cost of borrowing money, shown as a percentage.Full definition, any carried balance erases years of cashback gains.
YOUR INPUTS
2% is the Fidelity Rewards Visa flat rate verify×DON'T TRUST, VERIFYClaim: Fidelity Rewards Visa Signature pays 2% cashback on all purchases.Verify at: Fidelity Visa Signature card ↗Confirm current terms and any minimum-deposit threshold for the auto-invest feature..
7% is a moderate real-return assumption for a stock-heavy portfolio. Use 10% for nominal, 7% for real (inflation-adjustedinflation-adjustedA dollar number redrawn after stripping out the effect of rising prices, so you can compare what the money actually bought across years. A $30,000 salary in 1985 was worth more in real life than a $50,000 salary today.).
RESULTS
ANNUAL CASHBACK
$0
TOTAL CASHBACK PAID IN
$0
VALUE AFTER 30 YEARS, INVESTED
$0
GROWTH FROM INVESTING
$0
CASH VS INVESTED
Kept as cash: $0
Invested at 7%: $0
Difference from investing: $0
How this tool works
- Annual cashback = monthly spend × 12 × cashback rate.
- Future value of an ordinary annuity: PMT × ((1+r)^n - 1) / r, where PMT is annual cashback, r is annual return, n is years.
- The "cash kept" comparison assumes no return on the cashback (it sits in checking).
- This calculation requires you to actually invest the cashback automatically. Most people who plan to invest it do not. The Fidelity Rewards Visa deposits cashback into a Fidelity account; auto-investing into a fund (e.g., FZROX) takes one additional setting per Fidelity's current product documentation.
- Carrying a credit-card balance erases this math instantly. At 20%+ APR, any rolled-over balance costs more than the cashback earns. The 2% only works if you pay in full every month.
- Returns are nominal unless you've subtracted inflationinflationA general increase in prices over time, meaning each dollar buys less than it did before.Full definition from your assumption. The site uses 7% as a moderate long-run real return, 10% as a moderate long-run nominal return.
Related
Not financial advice. The card and the cashback rate are real; verify current terms before opening any product.